The proposed grant would support research on leadership behavior and organizational structure in new organizations. New organizations face a distinct environment that poses problems quite different from more established organizations. The situation of rapid growth and high uncertainty precludes more systematic, rationalized organizational styles. However, unlike the situation of organizations facing uncertainty due to rapid technological change, the critical resources and information for the new organization tend to be located in the top leadership. Historical studies suggest that the common response to this situation has been a loosely structured organization dominated by charismatic leadership. Only when the organizational environment becomes more stable and predictable is there a transition to a greater emphasis on rationality in managerial behavior and bureaucratization of the organizational structure. This process of creation and rationalization of formal organizations is especially important in the modernization process. Cross-sectional data have been collected from 26 medium-sized industrial firms in India at various stages of development. These data include systematic measures of managerial behavior, biographical data, formal structure, organizational configuration, organizational climate, perceptions of the environment, and financial performance. In all, over 800 items of information are included for each firm, all related to the changes occurring during the creation and rationalization processes. Support is requested for the data analysis phase of this project.